Apparently, Square has confirmed that it will be creating a new Bitcoin tool. On June 9, Square’s hardware lead Jesse Dorogusker announced the company would build a Bitcoin hardware wallet and accompanying services. The aim is to bring the crypto coin into the mainstream.
“We are building a hardware wallet and service to make bitcoin custody more mainstream. We’ll continue to ask and answer questions openly. The response from this community has been an awesome experience – encouraging, generous, collaborative, & inspiring,” said Dorogusker.
Square CEO Jack Dorsey replied to the tweet: “I, and @jessedorogusker, will listen to it and further the conversation.”. If we decide to build, we’ll set up a Twitter and Github account. The information will be updated when it is available. Thanks!”
Earlier in June, Dorsey tweeted several times that the company was considering making such a device. Dorogusker, in a thread, tweeted out: “Our next step is to build a small, cross-functional team, which will be led by @max_guise (welcome back!!). We will incubate this full-stack of tech, design, product, manufacturing, and supply chain with @templetonthomas & Square’s hardware team to start with a strong foundation.
What is a Hardware Wallet?
A hardware wallet is a special type of cryptocurrency storage that encrypts and maintains the user’s private keys. Among its strengths is that it provides security and utility when users interact with blockchains. It allows you to work on several blockchains at the same time. Users can manage Bitcoin, Ethereum & Alt Coins, Lumens, and more on a single device, thus enhancing utility.
Also, everything is backed up and accessible with a recovery phrase or password/key. It is usually a small, portable, plug-in device that allows you to access your cryptocurrency wherever you are. It should be noted that the cryptocurrency is not stored within the hardware of the wallet. The information is stored on the blockchain. This wallet merely lets you access your financial assets from a portable platform, much like how a credit card can access your funds from an ATM. The wallet opens the blockchain address where the crypto assets are stored.
Since it is a hardware device, it is extremely secure in cyberspace. In addition, the security key or access is isolated from rest of the Internet, making online attacks less likely.
Here is How it Generally Works
The device needs to be plugged into a computer (or laptop) and unlocked with your PIN code. You proceed with the transaction on the system. Your device will confirm the same once you’ve done so. The blockchain cannot be accessed without your specific digital signature, which is on that device. The secure hardware allows wallet-to-wallet exchanges and transfers.